Most mils in those days had extra parts but they did

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The delivery service was to take the crank shaft to be fixed.  Most mils in those days  had extra parts, but they did not.  The mill did not get the part back in time and as a  consequence they lost a lot of profits.  The delivery company breached contract  because they did not bring the shaft back in time and the mill company lost money.  They went to court and they found in favor of the delivery company.  This is because it  was so common to have extra parts and they company was not told by the mill. Punitive Damages-  punish or deter future conduct Generally not available for mere breach of contract. Ussually tort (fraud) is also involved To put the innocent party in as good of a position as they were before the breach Nominal Damages-  no financial loss   No money lost just want to set the field straight. Ex.  The Rosie O’Donnell Show- She had a magazine with a contract that said she had a  license to dictate how much content she could provide.  The judge said both were guilty  and said pay each other a dollar and to get out Mitigation of Damages. When breach of contract occurs, the innocent injured party is held to a duty to reduce  the damages that he or she suffered. The innocent party is NOT allowed to sit there and not nothing.  They must do  everything possible to mitigate everything legally possible Duty owed depends on the nature of the contract. Ex.  A landlord has a 12 month lease with the tenant. You are obligated to pay the  monthly amount and you are not allowed to sublease. You decide to go to backpack to  Europe.  You have now made it clear you are not going to pay rent.  The landlord can  not sit on the lease and let it run.  The landlord must find a new tenant. You find a renter  who will pay under the amount of rent.  The court will award the difference of rent  money plus incidental costs.   Liquidated Damages Versus Penalties.
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Liquidated Damages: specific amount agreed to be paid as damages in the event of  future breach. Penalties: designed to penalize, generally unenforceable. EX.  The contractor goes over target date by a week, they (the contractor) will have to  pay extra money. Like housing costs Court asks two questions: When contract was entered into, was it apparent damages would be difficult to estimate  in the event of a breach?    Was the amount set as damages a reasonable estimate and not excessive? Various Equitable Damages Sometimes damages are inadequate remedy.  Court can create equitable remedies: Rescission and Restitution.
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